Trial testimony lays out tolls of toxic drywall

Tuesday

Feb 23, 2010 at 12:01 AM

Witnesses tell of retirements postponed

By AARON KESSLER

The federal trial aimed at determining what is needed to fix homes with contaminated Chinese drywall wrapped up Monday, with homeowners outlining how the tainted material had changed their lives and scientists and engineers saying only broad and expensive work would make the homes liveable again.

U.S. District Court Judge Eldon E. Fallon is expected to issue a detailed ruling in the next few weeks, deciding both the scope of remediation -- a decision that could have far-reaching influence for all affected homeowners -- as well as a monetary judgment against Chinese manufacturer Taishan Gypsum Co.

The plaintiffs' attorneys are asking for at least $2.5 million to be awarded to seven Virginia families whose homes have the contaminated Taishan drywall.

The costs calculated for remediation itself, based on bids solicited independently from two Virginia builders, averaged about $86 per square foot, or roughly $172,000 for a typical 2,000- square-foot home. A number of the Virginia homes were larger, and their actual totals ranged from about $190,000 to $312,000 to repair.

In addition, the plaintiffs are seeking to be reimbursed for out-of-pocket costs associated with coil replacements or other repairs, loss of electronics and other damaged possessions, relocation expenses, loss of income and diminished value of the homes.

On average, the cost of those additional factors beyond remediation itself almost equaled the repair costs for each of the Virginia homes. Attorneys told the Herald-Tribune that about $1.2 million would cover remediation, with at least another $1.3 million for damages beyond the remediation.

The trial, technically a default hearing against Taishan, which has been absent from the proceedings, was originally scheduled to last at least five days.

But the abrupt withdrawal of the intervening defense team for Knauf Plasterboard Tianjin Co. Ltd. on the eve of the trial meant there was no cross-examination or defense witnesses and thus a trial of only two days.

Fallon heard emotional testimony from drywall victims from Virginia, seven of whom are the named plaintiffs in the proceedings against Taishan, a drywall maker controlled by the Chinese government that was first identified by the Herald-Tribune in early 2009.

Jerry Baldwin, a homeowner from Williamsburg, Va., paid nearly $400,000 for his home in 2006, including a $100,000 down payment that made up a significant portion of his and his wife's savings.

After three sets of air-conditioning coils failed, along with his thermostat, microwave and several computers, his house was diagnosed with contaminated Chinese drywall last year. But he and his wife remain in the house.

Approaching retirement age, Baldwin said he does not know when he will finally be able to stop working.

"A retirement that looked six years away now looks a lot further away," he said, choking up.

Another Williamsburg homeowner, Cathy Leach, began to sob softly moments after entering the witness box and was unable to continue. Her husband took her place.

Joe Leach, who works for the U.S. military in special operations, said the frequent moves associated with his career have been hindered because the couple cannot sell their house. He already has lost two assignment opportunities because he could not move.

The plaintiffs' attorneys also called scientific experts who built upon testimony about the effects of Chinese drywall heard last week.

The plaintiffs contend that the only way to truly fix the homes is to largely gut them down to the studs. They also have argued that doing so will actually be less expensive overall than a patchwork approach that tries to save some components.

Dean A. Rutila, senior principal with environmental consulting firm Simpson Gumpertz & Heger, said his team studied the seven Virginia homes and control homes in the same neighborhood. He also visited Florida in December to evaluate homes built by Miami-based Lennar Corp. and Beazer Homes, which are conducting their own repairs of some homes.

Rutila said the corrosion caused by the drywall "is unacceptable from the perspective of life safety and the building code." Any remediation "requires the replacement of all drywall, electrical equipment and all copper and silver components in the houses."

Rutila showed photographs and test results for switches, wires and other electronics that had corroded. The study of switches was the subject of more than one expert witness during the trial, and has proven to be a key element in the electronic-related failures in affected homes, which go beyond light switches.

Several experts testified that silver contacts in electronic components are being corroded by gases from the drywall, which leave a black layer of silver sulfide. Silver sulfide blocks current at 100,000 times the rate of silver itself, and it only takes a thin layer to interfere with everything from computers to smoke detectors.

Rutila showed a corroded light switch taken from one of the Virginia homes. "That should look like a piece of silver. Instead it looks black," he said.

Judge Fallon rose from his chair to stand next to Rutila in the witness box as the scientist showed him the switch and demonstrated his findings.

At another point, Fallon questioned Rutila about the methods used by builders Lennar and Beazer. Rutila said his recommendations largely mirrored the builders' approach. But Fallon also asked Rutila to lay out the differences between the two builders' approaches.

Rutila said Lennar is trying to keep cabinets and wood floors ("sometimes they succeed, sometimes they don't," he said), while Beazer is replacing them. Conversely, Lennar is replacing air conditioning compressors -- outside the house -- while Beazer is leaving them. Rutila said Lennar found that the compressors were failing because of something called "short cycling."

"When the inside air handler malfunctions, the outside air compressor tries to work harder," Rutila said. "It wears itself out because of the failure on the inside."

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